Controversy erupts over Durham Co-op referendum that would strip workers of own class of shares, governance

Since it opened in March, the Durham Co-op has come to symbolize the ideals of democracy, egalitarianism and fair trade. Owned by its members—people who buy shares— the co-op, for many, is a rebuke to Whole Foods, which pretends to be progressive but is actually a large corporation run by a libertarian, anti-union CEO.

However, the co-op’s patina could be tarnished by a controversy involving a vote on its articles of incorporation. If the members pass a referendum on Sunday, it could eliminate from governing documents the ability of workers to buy a separate class of shares from consumers. It also would prevent worker-owners from electing up to two representatives to the board of directors. Ten people currently sit on the board.

The disempowerment of rank-and-file co-op workers runs afoul of the very values the store espouses, says David Roswell, an owner and investor. He also sells his pottery at the co-op. “The workers don’t want to lose this right,” Roswell says. “The co-op is taking away the tool for democracy, wealth building and control. That’s what distinguishes the co-op from Whole Foods.”

Consumer-owners have been voting for nearly two weeks on both the bylaw changes and on candidates to the board. Voting ends Sunday at the co-ops’s annual meeting. [Update: voting ends Nov. 13 on board candidates.] Critics of the change want the store to delay the referendum to allow for more discussion among the membership.